Canadian Pacific Railway Ltd. (CP) has announced that it has terminated efforts to merge with Norfolk Southern Corp. (NS), including the withdrawal of a resolution asking NS shareholders to vote in favour of good-faith negotiations between the two companies. According to the announcement, no further financial offers or overtures to meet with the NS board of directors are planned at this time.
According to the company, Canadian Pacific Railway proposed the creation of an end-to-end railroad with the intention of increasing competition, easing freight congestion now and into the future, improve service to shippers, better support the economy and generate significant shareholder value for both companies.
CP CEO E. Hunter Harrison, said of the negotiation termination, “We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders.”
Source: Canadian Pacific